PSA, DP World vying for terminal near Chennai

Two of the world's biggest terminal operators are set to battle for the right to run a new container terminal in Ennore, near Chennai in southern India.

Dubai Ports World and PSA International, both of which already have extensive presence in India, are both likely to bid for the roughly $325 million concession, Live Mint reported Friday.

Interestingly the terminal has already been hit by some controversy, as tariffs at Ennore will be determined upfront by the port and not by the national government regulatory agency, the Tariff Authority for Major Ports, because Ennore is not one of the country's 12 designated major ports.

On the case of the container terminal, the successful private operator will not have the freedom to set tariffs, A. Rajagopalan, director of operations for Ennore Port, told Live Mint. The tender floated by the port said the operator will be entitled to charge a pre-determined user fee from its customers. Both DP World and PSA have already faced tariff issues in Indian ports, but it hasn't dissuaded them from seeking to operate a terminal in one of India's busiest container gateways.

Source: American Shipper